LET THE MARKET TELL WHO WE ARE

Zinc is currently trading at 112.25 after hitting intraday low of 110.95. Counter had been moving in a nice down trend and formed a descending trend line breakout on October 9, 2015. Now this metal is fluctuating near its 30 days SMA that stands near 111.90 zones. Prices are getting support near 110.60 which is low placed during the month of August this year. A potential inverse head and shoulder reversal pattern can be seen clearly on daily chart. According to this pattern reversal will confirm above neckline breakout that stands near 123. Recovery from today’s low of 110.95 indicates buying interest in this metal. MACD is making higher top if compared with prices and suggests a hidden divergence. However, MACD has formed a bearish cross near center line but lack of follow through selling suggests a strong support near 111-110 zones. Price has stuck in a range and volume has shrunk that indicates low participation. Respect of 109 zones will result in a rally towards 122 and then 129 ...

NIFTY index has been witnessing a correction in a channelized manner after posting a life time high of 9119.20 during the month of March this year. Now index is moving in a corrective leg of this intermediate down trend. Recently nifty has headed a high of 8246.40 but failed to attract follow up buying after closing a full gap partially which was left during the month of August this year. On Monday, if this index manages to hold above 8250-8260 zones then it will try to head towards 8320-8360 to fill this gap completely. There is another small gap left between 8322 and 8360 zones and these areas are also resisted by 50% correction level of entire bearish move from high of 9119.20 to low of 7539.50. Presence of descending trend line near 8350-8360 zones will be a tough challenge for bulls. Price and time symmetry also hints a potential reversal from 8300-8350 zones. In other words, stability below 8260 will keep this index in a consolidation mode between 8100-8260. Recovery above 8260...

Gold is now trading at $1177.76 and testing its broken horizontal support that has flipped to become resistance now. Prices are staying within a potential rising channel and failing to attract further buying to confirm a breakout above the resistance line of this channel. Stochastic has reached in overbought territory and failing to make a new high if compared to August 2015 peak when gold headed a high of $1169.93. Divergence between price and indicator hints weakening of bullish momentum that may result in failure of current rally. Immediate resistance is now placed at $1192. Decisive closing above $1192 will neglect these expectations of a bearish reversal and then retest to $1204 and $1227 can’t be ruled out. If we get a confirmation above 1193 then next big hurdle will be around $1233. Support is now seen near $1174 and then at $1163. Key support remains at 1163 and stability above this support will keep this metal in a sideways mode between 1165 and 1190. Any sustained move belo...

Gold on MCX currently trading at 26278 it has witnessed a nice recovery after hitting a low of 25900 during recent bearish attempt. Gold had broken a descending trend line resistance on August 20, 2015 but couldn’t attract smart money and a nice sell off took place after printing a swing high at 27833. Prices were fluctuating just below 40 days EMA after forming a bullish cross over by 10 EMA during the month of August. Now 10 days EMA is staying above 40 days EMA that that qualifies a bullish trigger. Stochastic had reached in oversold territory and now it has formed a bullish cross and trying to recover from oversold territory. Once again stochastic has entered in oversold territory whereas prices are staying above 62% correction level of the swing that occurred from low of 24661 to high of 27833. This relation between price and stochastic indicator suggests a bullish divergence. Price action on chart maintains its bullish bias that was established by a bullish swing during the mont...

Nifty spot is currently trading at 8259, and this is the last session for the week ending on August 21, 2015. Today nifty has broken through the key support of 8355 established by a strong trend bar during the week ended on July 17, 2015. Possibility of a head and shoulder top reversal pattern is also visible and nifty has reversed from the height of the left shoulder and triggering possibilities of a head and shoulder reversal that will get confirmation if nifty manage to hold below its neckline around 7950 in coming days. As per current scenario market bias has turned bearish as prices have fallen below 20 weeks SMA and likely to settle below the same. Now areas of 8190 are a minor support if bulls manage to protect this level then we will see a consolidation among 8200-8500 in short term. Failure of 8190 will put focus back on the neckline support of this reversal pattern at 7960 and any weekly close below this level will offer a retest to 7200-6800 zones. A healthy correction is a...

Gold on mcx has opened with an upside gap and heading higher since its opening and currently trading at 26441. It has climbed above its down sloping trend line resistance and now approaching towards a congestion zone that stands around 26490-600 zones. Areas of 26540 are also resisted by 200 period’s simple moving average on daily chart. Stochastic has reached in overbought territory and may bring a temporary pause or correction near key resistance zones around 26540-600. Any sustained move above 26600 with 2 or more consecutive closes will supply more power to gold bulls and then we will see this metal heading towards 27000-27400 zones. Recommendation: one can look for selling opportunities near 26540-600 zones with a stop loss above 26870 for targeting 26200-25900-25450 in short term.

Gold on MCX has witnessed a nice decline in today’s session and it has headed a low of 24451 for the session and currently trading at 24550. As we can see on chart provided above a three pint bullish divergence is clearly visible on MACD and RSI indicators. Recently we have seen a bullish engulfing candle on hourly chart that hints possibilities of a bullish setup here. Considering current scenario favorable for a bullish trade on can look for a long trade in gold near the areas of 24530-500 with stop loss below 24450 for targeting 24670-24750-24870 and more upside.